France Dominates Malaysia Arms and Aerospace

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    Armand2REP CHINI EXPERT Veteran Member

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    Armament, France in Pole Position in Malaysia

    How aerospace and defence came to be dominated by France

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    By Michel Cabirol, Kuala Lumpur

    French manufacturers arrive at Singapore Airshow, the "Singapore Airshow," which opens Feb. 14, exalted for their success in Malaysia. An exception in Southeast Asia.

    Who could believe that Malaysia to over 10,000 km of Paris is the country most Francophile of the South-East Asia in terms of purchases of aircraft equipment and defense ... Yet, Paris is the biggest arms exporter in Kuala Lumpur, far ahead of the United States, a juggernaut in this area truly preserve of the U.S. administration, who growls and rages against the Malaysians too fond to their taste for French technology. This is the nugget of industrial lights in the region with India. "Otherwise we have a weak position in this region. Where is the promised land? It is a myth and that's the sad reality, "says one in The Tribune.

    The fifth French customer

    Despite U.S. pressure, Malaysia, which has good years and bad budget for military equipment of 900 million euros, ranks fifth among the customers of French defense industry behind the two weight Heavy Gulf (Saudi Arabia and UAE) and leaders of the Brics (Brazil and India). "This is one of the most successful of France even if this success is very discreet," lamented the president of EADS Malaysia and Brunei, Bruno Turnip. Over the past decade, the French defense industry has managed some very nice shots: two submarines conventionally powered Scorpene (DCNS) in 2002, four aircraft A400M troop transport (Airbus Military) in 2005, twelve helicopters tactical EC725 (Eurocopter) in 2010 and almost six corvettes Gowind DCNS in 2012. Besides the arms of MBDA and a 257 armour upgrade by Thales.

    Airbus raid

    The civilian is not far behind. Airbus made a raid in Malaysia, especially in AirAsia, which has a 100% Airbus fleet. The low cost successful South-East Asia will eventually have the largest number of A320s in the world (375 firm orders, including 200 Neo). In addition, the thundering of AirAsia boss Tony Fernandez has also offered the A350 (15 copies) and flew a fleet of nine A330-300 (+ five A330-200s on order). At Malaysia Airlines (MAS), which in turn will have six A380, has a fleet of eleven A330-300 (13 are still to be delivered) and three A330-200. The helicopter subsidiary of EADS, Eurocopter, meanwhile sells on average a dozen machines. The regional aircraft manufacturer ATR (50% EADS, Finmeccanica 50%) sold in 2007 twenty ATR 72-500 in two subsidiaries of the airline MAS. Finally, Astrium (EADS) was selected in June 2011 by the telecom operator Measat far more in favor Boieng to build the satellite telecom Measat-3B.

    French touch

    Why such enthusiasm for the French equipment? Malaysia (28.7 million beginning in 2012), as the whole Asia Pacific region is experiencing strong growth in passenger traffic (+6.7% in 2011). In addition, MAS and AirAsia want to play in the majors over. Hence the desire to arm themselves to become essential to companies regionally and internationally even though today MAS knows some difficulties and needs to restructure. Apart from favorable investments in airport and aircraft, Malaysia, a country buyer, wants to become a producer. Political will embodied by Prime Minister Najib Razak, former defense minister from 1999 to 2004 and who knows, in fact, very good quality French materials, including the Tiger combat helicopter in which he stole. "Malaysia (7% growth per year for 50 years) has the ambition to make the transition from developing countries than in high income countries in the space of three generations," says one to France's embassy in Kuala Lumpur.

    A level playing field with U.S.

    And that the French manufacturers to export, can do so for a very long time. Namely design and organize industrial cooperation with technology transfer, which allows them to play occasionally or almost equal footing with the firepower of the United States. This is particularly the case in Malaysia. Evidenced by winning the cooperation between DCNS and conglomerate Boustead. Its subsidiary Boustead Naval Shipyard (BNS), who chose the design of naval group tricolor, was awarded a contract worth 2.14 billion euros to bring to Malaysia six corvettes multi-mission Gowind, which will be manufactured locally by SNB.

    Established since 2002 in Malaysia, Eurocopter is the best example of this industrial cooperation. Eurocopter Malaysia, which achieved a turnover of 105 million euros (+20%), became a center of support and maintenance for all helicopters in the region of Southeast Asia (Malaysia, Thailand , Indonesia and Philippines). His boss, Pierre Nardelli has signed a cooperation in 2011, as part of the offsets (industrial counterparts) covered by the contract EC 725, with the Malaysian group CTRM (Composites Technology Research Malaysia), which is now the only company in the world to provide the small window of the EC 130, made ​​in France so far. Is a market for 40 machines per year. CTRM, who also works with Airbus has a backlog of 1.5 billion euros, most of which is generated by the aircraft manufacturer Toulouse: including 1 million in revenue comes from A400M , 1 million per A350 delivered, between 700,000 and 800,000 euros and 500,000 euros A320 delivered by A380 delivered.

    Regional tensions

    In the field of defense industry can not derogate from the offsets in Malaysia, which has adopted an ambitious policy in the matter forward to form the aviation industry. These counterparties have increased from 50% in 2010 to 100% in 2011 for the contract period and from a tender worth 10 million euros. "Offsets are no longer based on the exchange to purchase goods (eg palm oil) but on investment in the country, says an industrial lights. The emphasis is strongly on training. " They can be direct or indirect, usually with technology transfer.

    Finally, washed by the South China Sea to the north, Malaysia, like most countries in the region, is to have a weapon credible defense against the might of China, which leads to tension in this region. Just like the Spratly islands, rich in hydrocarbons, Parcels islands are claimed, also, by several countries besides China and Vietnam including Brunei, Malaysia, Taiwan and the Philippines. So, Malaysia is seeking to increase its military naval (submarine corvettes ...). Like most of its neighbors that develop submarines needed to ensure their sovereignty to their coasts. For China, she currently has 63 submarines, including eight nuclear-powered and 31 modern and functional.

    Armement : la France, en pole position en Malaisie
     
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